Tax Proposal Is Foul Ball

Our Towns: Berlin, New Britain

May 27, 1999

Berlin's misguided effort to tax New Britain Stadium is under review by the town's board of assessment appeals, which should grant the city of New Britain an exemption.

The stadium, which is owned by New Britain, sits primarily in Berlin and was assessed by the town at $4.14 million. Taxes on the value of the stadium would be $121,000 a year, which would exceed by far the $56,000 that New Britain earns on parking and skybox rentals. Berlin has argued that because the city receives income from the stadium, it should no longer be tax-exempt.

New Britain sensibly maintains that no tax is due because the stadium is a regional asset. The state apparently agrees, because the ballpark was built with an $8 million state grant. During construction, Berlin officials also voted to support the project by waiving all but $3,000 of the possible $65,500 in building fees. Further, New Britain makes no money on the enterprise because the income from parking and the skybox is used to cover the cost of paying off the city's $2 million stadium construction bond and other expenses.

The move to tax New Britain was suspect from the start because it arose last year after Berlin failed in an effort to purchase a piece of city water department land located in Berlin. Angry town officials used the incident as an excuse to dredge up an old suggestion that the stadium be taxed.

The stadium was built to keep professional baseball in central Connecticut, which has a positive effect on the region's vitality as a place to work and live. It also gives spinoff business to area gas stations, restaurants and hotels.

If the New Britain property were truly income-producing, Berlin would have an argument. It's not, and the matter should be dropped.